Solar should become a cradle to grave solution for mining outfits

Solar should become a cradle to grave solution for mining outfits   

In an era where all aspects of mining operations across the world are scrutinised and needs to comply with stringent Environmental, Social and Governance (ESG) standards, investing in a renewable option from the start, could benefit the project significantly in the future.

By Leon Louw, owner and editor of WhyAfrica

The earlier mining companies invest in renewables, the easier it becomes to incorporate such systems as the mine develops and grows. Renewable energy should, in fact, become a cradle to grave solution and the system should be incorporated in all stages as the operation expands.

Early-stage projects could improve their ESG standing substantially by deploying solar PVs, for example, from the very beginning of an exploration project. Exploration outfits in the most remote regions of Africa should really become champions of sustainability by using some sort of mobile renewable solution or a hybrid system instead of fossil fuels.

Partnering with a renewable energy supplier that provides a mobile solution and a flexible lease or funding contract, would benefit an early-stage exploration company immensely and not only improve its ESG standings, but also reduce the upfront operational costs, putting the company on a sustainable growth path from the outset.

A concept based on flexible offerings

 The Release concept (from Renewable Energy Lease) is based on a flexible lease commercial offering. This flexible structure allows for a simpler and more streamlined contract, avoids the upfront commitment of an Engineering, Procurement and Construction (EPC) structure, and avoids the long-term commitment of a 20-year Power Purchase Agreement (PPA) structure. Release also offers flexibility in terms of the ability of the mine to own the asset at any point in time during the lease.

“Even considering current bottlenecks in the supply chain and with limited or non-existent infrastructure, Release by Scatec could deliver its renewable solution to a 1MW to 40MW operation in about six months from the signing of the contract to commercial operation, of which four months is related to logistics,” says Hans Olav Kvalvaag, SVP Release. Scatec has been active in Africa for decades and brings a wealth of experience from a diversity of global conditions to the local world of renewable power generation. They’ve had a foothold in the South African market since 2010.

In an era of intense environmental awareness, burgeoning decarbonisation, and decentralisation, renewables-based projects have finally become cost-competitive with fossil-fuel based ones. Moreover, it is now possible to roll out a mobile power solution on a greenfields site as quickly as it takes to set up a diesel driven energy solution.

“Release as a rapidly deployed offering is meant to reduce diesel consumption. It is a re-deployable, containerised, and pre-assembled solar and storage solution with initial contract terms as short as 3-5 years, that works out far cheaper than diesel alone even on shorter timelines, especially during the current hikes in oil prices. “The catch point here for Release is that we made solar as quick, if not quicker, than installing gensets,” says Kvalvaag.

Today, solar and battery solutions can be integrated with any existing power infrastructure, being anything from grid, hydro, thermal or biogas. Over the last few years there has been significant technology advancement on micro-grid controllers and energy management systems that control and dispatch the various power sources in a hybrid system. In fact, with multiple power sources, the reliability and redundancy, even for smaller systems increases significantly, and solar and particularly batteries reduce the customers operational down-time due to power outages, tripping etc.

It makes sense for mining companies to invest in solar or other renewable options from cradle to grave. Not only are the ESG benefits significant, but renewable solutions can result in substantial savings over the long term. According to Kvalvaag, solid policies and procedures, consistent performance measurement and target setting in the ESG space, will give any operation or project competitive advantage.

“Moreover, energy makes up 15% to 40% of a mine’s operating costs. Release can help to reduce the energy cost significantly, while protecting the mine’s balance sheet by shifting capital expenditure to operational expenditure,” says Kvalvaag.

Solar should become a cradle to grave solution for mining outfits   

Leon Louw is the founder and editor of WhyAfrica. He specialises in natural resources and African affairs.        

WhyAfrica provides you with business intelligence that matters. Africa is our business, and we want it to be yours too. To subscribe to WhyAfrica’s free newsletter or digital magazine, and for more news on Africa, visit the website at www.whyafrica.co.za or send a direct message. WhyAfrica launched its first ever digital magazine in November 2021. The company will undertake a road trip through South Africa, Namibia, Zambia, Zimbabwe and Botswana in June and July 2022. If you are interested in sponsorship or advertising opportunities, please contact me at leon@whyafrica.co.za. We have a wide range of different packages and combo deals to give your company the greatest exposure to a rapidly growing, African readership.  

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Solar should become a cradle to grave solution for mining outfits